LJS Accounting Services

What Can You Claim if You’re Self Employed

At LJS, we are experts at what we do and we are here today to help you if you are self-employed and what you can claim if you are self-employed and need some guidance on this.

If you are self-employed you will be charged tax based on the amount of profit you’ve made in a tax year, but there are a number of expenses you can claim that will lower your tax bill.

Anything you buy for your business such as computers or machinery you can claim back and get immediate tax relief for the full amount. Keep reading for some more in-depth understanding of the things you can and can’t claim back if you are self-employed.

 

Keep Your Records

The key to claiming anything for yourself, especially if you are self-employed is to have the evidence. Keep all records of your business at all times to prove your costs, no matter what you are claiming for.

You must add up all your allowable expenses for the tax year and put the total amount on your Self Assessment tax return. Click here for help with all things related to personal tax.

Below is a list of the things you can claim back if you are self-employed, it is important to know what you are entitled to.

 

Office Equipment

You can claim for things needed for an office including supplies that are used for less than 2 years. Stationery expenses include a range of things including:

  • Work phones, fax and internet bills
  • Rent
  • Insurance costs
  • Bills
  • Security
  • Postage
  • Stationary
  • Printers, printing costs and printer ink and cartridges
  • Computer software (used for less than 2 years)

Do note that you cannot claim for purchasing a building for business premises.

 

Travel Expenses

You can claim allowable business expenses for vehicle repairs and servicing, fuel, parking, hire charges, vehicle licence fees, breakdown cover, train/bus/taxi fares, hotel rooms and meals on overnight business trips.

If you buy a car or vehicle for your business then you may need to claim this as a capital allowance as long as you are not using simplified expenses.

 

Clothing Expenses

You can claim for clothing that includes uniform and protective clothing you need for work as well as costumes for actors or entertainers. You cannot however claim for everyday clothes, even if you wear them for work.

 

Staff Expenses

You can claim allowance business expenses for staff that includes:

  • Employee and staff salaries
  • Bonuses
  • Pensions
  • Benefits
  • Agency fees
  • Subcontractors
  • Employer’s National Insurance
  • Training courses relating to your business

You cannot claim for carers or domestic help for your staff, for example for nannies.

 

Reselling Goods

You can claim goods for resale of raw materials and direct costs from producing goods. On the other hand, you cannot claim any goods or materials bought for private use or depreciation of equipment.

 

Legal and Financial Costs

Any accountancy, legal and other professional fees can count as business expenses, including:

  • The hiring of accountants, solicitors, surveyors and architects for business reasons.
  • Professional indemnity insurance premiums
  • Bank, overdraft and credit card charges
  • Interest on bank and business loans
  • Hire purchase interest
  • Leasing payments
  • Alternative finance payments
  • Any insurance policy for your business

 

Marketing and Entertainment

You can claim back if your business advertises in the newspaper, flyers, free samples, website costs, and professional journals.

Entertainment and marketing claims that you cannot claim for include; entertaining clients, suppliers, customers, event hospitality, gym memberships, donations to charities and political party payments.

 

Training Courses

If training courses are required to improve your skills and knowledge and you use them in your business then you can claim the cost of these back. The training courses must be related to your business, for example, a refresher course.

You cannot claim for a training course that helps you start a new business or expand into a new area of your business which includes anything related to your current business.

Remember if you need help then do get in touch with us at LJS as we are the accounting experts and can deal with all your accounting needs and enquiries. Call now for a free consultation, we can provide you with our award-winning service and are always happy to help and advise.

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Need to talk to someone? Get in touch with one of our consultants today and we will be happy to help.
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